Although I did not vote for Obama, I still believed he was the better choice. He was what our country needed as many of us needed hope. However, he is really doing some things that just do not make a whole lot of sense.
I recently read about Obama's helath care reform. He wants to subsidize the plan by taxing people making over $280,000.
Lets just distribute the wealth. We can be a socialized society. How many socialized societies work? The people that make over $280,000 are those who employ many of the average workers making $30,000-$50,000. What do you think will happen to the employees of the worker making over $280,000?
The problem with Obama is that he does not seem to think of the consequences before he acts. Everything just has to get done and fast with him.
An example: He went and decided to push this Housing Recovery Act. A part of the Housing Recovery Act dealt with appraisals. Normally, a mortgage broker would just call up one of the 2 or 3 appraisers he works with and they would appraise the property.
With Obama's plan, the appraiser cannot talk to the mortgage broker. The mortgage broker does not select the appraiser. The Asset Management Company does. So the mortgage broker orders the appraisal. 3 days later the appraiser calls the listing agent and meets them at the home. Then about 7-10 days later the appraisal goes into the system, and they contact the mortgage broker and the appraisal is uploaded so the mortgage broker can access it.
On the surface this looks fine. Here are the problems.
- In my last 3 appraisals the appraiser did not know the area. I know the appraiser is supposed to have an office within 20-30 miles. The problem with that is many have virtual offices in many locations. So you have an appraiser that mainly appraises property 50 miles away that knows nothing of the area, and the mortgage broker cannot even speak to them.
- The intention of the appraiser not speaking to the mortgage broker is right, but the problem is that the appraiser is allowed to speak to the real estate agent which has more of a vested interest in the transaction.
- If the appraiser did a poor job on comparables then the mortgage broker has to submit a request for review to the asset management company which in turn will contact the appraiser. This can be a lengthy process
- The time frame is just too long. Where we were able to get appraisals back in 2-5 days they are now taking 10-14 days. That does not seem like a huge difference in time, but it is as the seller is taking this home off the market for an extra 8 or 9 days.
- The appraisers now make less and do more work. This system has forced out many appraisal companies because they are making half as much for the appraisal and are doing twice as much work as the guidelines of the Asset Management Company is much more detailed.
In conclusion of this program:
- This system forced people to look for new jobs.
- Forced seller to keep properties off the market for a longer period of time and in many cases received less money for their home because of this.
- You have appraisers appraising property that knows nothing about the area, and you can't even make an argument with them as you have to go through the asset management company if you have a problem. Seem like bureaucracy to you?
- Appraisers can't speak to mortgage brokers, but can speak to real estate agents.
This program has unintended consequences, and this is what I am afraid of with health care reform. We need to make sure we get it right, and have listened to every argument and consequence before instituting another multi-billion dollar program.
David Serle
Vice President/Managing Broker
RE/MAX Services
561-912-3500 Office
561-912-3502 Direct
561-756-3104 Mobile
